Toto Energy, an energy supplier with around 134,000 domestic customers has ceased to trade. Under Ofgem’s safety net, the energy supply of Toto Energy’s customers will continue and prepayment meters can be topped up as normal. The outstanding credit balances of customers will be protected.
Ofgem will choose a new supplier to take on all of Toto Energy’s customers. This supplier will contact these customers shortly after being appointed.
Toto Energy becomes the eighth company to fail this year and the 14th domestic energy supplier to exit the sector in the past two years. The Brighton-based company only recently acquired the customers of Solarplicity.
Philippa Pickford, Ofgem’s director for future retail markets, said “Toto Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and customers’ credit balances are protected. Ofgem will now choose a new supplier for you and whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.”
Gillian Guy, Chief Executive of Citizens Advice, said “Toto Energy is now the 14th domestic energy supplier to collapse in the last two years. “We will all end up paying for the failure of energy suppliers as costs get passed down onto our energy bills.
“While measures announced by Ofgem will go some way to limiting the costs left behind when firms collapse, more action is needed.”
“Toto Energy leaves behind £4.6million in unpaid bills for renewable energy development. Government should legislate to require suppliers to make these payments more regularly and stop firms being able to build up such sizeable debts.”
Peter Earl, Head of Energy at comparethemarket.com, said “Just days after Ofgem announced proposals to implement new financial checks and tests for existing energy providers, Toto Energy becomes the 14th supplier to collapse in the space of a year. Such a pattern of supplier failures underlines the urgent need for new entrants to the energy market to be thoroughly vetted. A red flag for the viability of Toto Energy was Ofgem ordering the provider to pay £4.5million in outstanding Renewables Obligations earlier this month.”
“Days before the clocks go back and with the temperature dropping, Toto Energy’s 134,000 customers will be reassured that Ofgem is taking immediate action to appoint a new provider so that they can use energy in their homes this winter without disruption. For Toto Energy customers, being assigned an energy supplier by a regulator is a necessary emergency measure and not a long-term proposition. Going forward, these customers may find that shopping around offers them a more affordable tariff than the one they are assigned by Ofgem.”